Technical analysis
The RSI is under the line 50, with the MACD indicating that a downtrend may prevail
The price is under MA(10) and MA(15), suggesting a possible downward movement.
What the possible outcomes are
Oil prices are trying to recover after a sharp fall upon the OPEC agreement and fears of surging COVID cases worldwide. Therefore, USDCAD may decline upon the Canadian dollar strengthening as a commodity currency.
In our most likely scenario, the USDACAD pair may experience a downward correction towards the first support level of 1.25234. If the pair falls below the first support level, we can expect a continued downtrend towards the second support level of 1.24447.
Contrarily, the pair may initially rise towards the first resistance level of 1.26143.
If the pair manages to surpass the first resistance level, we should expect a continued surge towards the second resistance level of 1.26706.
Key levels
Support 1.24447 1.25234
Resistance 1.26143 1.26706
